Aurobindo Pharma relapses
Just last week, on Wednesday, 19th Feb, Aurobindo Pharma celebrated the US FDA inspection of Unit IV, a general injectable formulation manufacturing facility of the Company, wherein it received the Establishment Inspection Report (EIR) with Voluntary Action Initiated status from USFDA.
Voluntary Action Indicated (VAI) which means objectionable conditions or practices were found but the agency is not prepared to take or recommend any administrative or regulatory action.
It was the top gainer of the day. And today, in what has probably happened for the first time, the FDA, on 21st Feb, Friday, revoked this VAI. The FDA communicated that the review continues to remain ‘open and under review.’
This flip-flop attitude of the FDA is impacting the shareholders negatively as one can see from the stock price – it is currently the top loser on the BSE; from its close of Rs.599.55 on Thursday, it opened lower at Rs.539.60, going down to an intraday low at Rs.491.90.